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Almost six years ago, we told readers about Ottawa, Kansas, where the community of around 13,000 people had invested in publicly owned fiber optic connectivity for local businesses. We recently touched base with IT Director Paul Sommer, who updated us on the progress of their broadband utility and how it has impacted the community.

Steady as it Grows

When we first met Ottawa, they had worked with the local school district and Franklin County to capitalize on existing fiber infrastructure and expand to more locations. Local leaders had learned from Ottawa businesses that the best options available from incumbent AT&T were T1 lines for approximately $600. Higher capacity connections were scarce and financially out of reach for local establishments, and AT&T could not be convinced to upgrade their infrastructure. As Bigham put it, AT&T was "milking the cow."

Once the city, school district, and Franklin County established a partnership, Ottawa began to expand fiber to other municipal facilities and businesses as requested. Sommers, who has taken over as IT Director, says that now all 10 city buildings are on the network. In addition to an industrial park on the original infrastructure on the north end of town, the network now reaches an industrial park to the south.

The electric utility has trained their own staff rather than hiring external fiber deployment personnel. In addition to enriching skills, their employees are able to respond quickly if there are downed cables or other maintenance issues. Sommers recalls an instance when a car, which had caught fire, sent shrapnel flying into the air. By a twist of fate, one piece severed the fiber optic cable hanging some distance away. His team was able to rehang and splice the cable that same day and get the subscriber back online.

By using electric utility staff, Ottawa has reduced the cost of their incremental build over the years. They typically budget around $100,000 each year for expansion of the network, have never gone over, and often don’t spend the entire allotment. Sommers says that, since they own the utility poles in town, have necessary personnel on hand, and equipment at the ready, unnecessary bureaucracy doesn’t slow down maintenance, repairs, or expansion efforts.

More than two years ago, community leaders in New Braunfels, Texas, decided to move forward with funding for a feasibility study to examine options for publicly owned Internet infrastructure. In mid-July, the city released a Request for Qualifications (RFQ) in search for a partner to assist them on their New Braunfels Broadband Project. Responses are due August 24th, 2018.

Prior Study

Back in 2016, businesses completed a survey as part of a feasibility study and 81 percent expressed dissatisfaction with their Internet access. Speed, reliability, and affordability were all important factors. Community leaders, with an eye toward economic development, have been pondering ways to overcome the problem and have decided to aim for a public-private partnership. Specifically, they want to focus their efforts on fiber optic connectivity in their commercial and industrial business corridors.

New Braunfels has about 55 miles of existing fiber that the city and New Braunfels Utilities (NBU) will make available for the project. They also have conduit that they will open up for the future network design. NBU offers municipal electric, water, and wastewater services, which indicates that they would likely have the knowledge base and the personnel to operate a fiber optice network, but the RFQ states that they're looking for a turnkey arrangement.

In their RFQ, New Braunfels states that they want to find either a private or public sector partner that will offer a revenue sharing arrangement. They expect a minimum of 1 gigabit connectivity now with an expansion to at least 10 gigabit capability in the future. New Braunfels also prefers a partner willing to grow the network over time and have unequivocally stated in the RFQ that fixed wireless on its own will not be suitable to meet...

Over the past several decades, the population of Somerset County, Pennsylvania, has incrementally jumped up and down, but today's population is the same as it was in 1960. In order to boost economic development and encourage growth with more jobs, community leaders are deploying fiber for better connectivity in several industrial areas.

Financial Help For Fiber Connectivity

In May, U.S. Department of Commerce’s Economic Development Administration (EDA) announced that they would provide a $569,000 grant to the county to help fund the project. The EDA consider the project worth while because they expect the project to retain 20 existing jobs, generate 42 new jobs, and stimulate $25 million in private investment.

County officials intend to combine the EDA grant with an additional grant they received in January from the Appalachian Regional Commission. The ARC grant of almost $949,000 will allow Somerset County to dedicate approximately $1.5 million to run fiber four industrial parks. The County will match the grant award in order to fully fund the 22-mile network, which will expand existing Somerset County fiber infrastructure. View a map of the proposed expansion here.

Lack Of Meaningful Connectivity In Rural Pennsylvania

Recently, the County Board of Commissioners approved a contract with a firm to oversee the project. Long-term goals are to improve connectivity for approximately 1,100 businesses and 3,900 households along with local community anchor institutions (CAIs) and other entities. Approximately 18 percent of the people in Somerset don’t have broadband as defined by the FCC (25 megabits per second (Mbps) download and 3 Mbps upload) according to Form 477 data. The number is likely much higher, however, because Form 477 data tends to overstate coverage, especially in rural areas. Shortly after the county received the EDA award, two local Internet service providers expressed interest in delivering services via the new infrastructure.

The federal government has awarded a $2.74 million grant to Hayward, California, to help fund the design and installation of conduit and fiber-optic network in the city’s industrial zone.

The grant, from the U.S. Department of Commerce’s Economic Development Administration, will enable Hayward (pop. 150,000) to install at least 11 miles of new conduit and fiber optic cable, the city said in a recent news release. Construction will begin in September 2017, and should be finished by the fall of 2019.

Paul Nguyen, city economic development specialist, told us, “The $2.7 million grant award is 50 percent of the total estimated project cost, roughly $5.4 million.” The city’s matching share of the project includes a $2.1 million in-kind contribution of the city's publicly-owned right-of-way property, $480,000 in general funds, and an additional $156,000 that has already been committed to the construction and installation of fiber-optic conduit in the Whitesell Street segment of the fiber loop.

Leveraging Existing Infrastructure

In its news release, Hayward officials said:

“The fiber optic network will leverage existing city-owned underground conduit and fiber optic cables used primarily for traffic communications and include new construction to complete a loop in the Industrial Technology and Innovation Corridor. This crescent-shaped corridor, located along Hayward’s western and southwestern city limit, is home to a wide range of businesses including manufacturers of food, pharmaceuticals, auto parts and electronics. The area is also becoming home to an increasing number of biotechnology and medical device makers.”

Nguyen noted:

“Today, access to broadband Internet service is as vital to industry as electricity was a hundred years ago. This federal funding will help expand Hayward’s broadband infrastructure and enhance our community’s ability to attract new advanced industries. It will also provide our existing businesses with the tools they need be competitive in today’s high-speed, data-driven global economy.”

For more than 100 years, Nevada's Churchill County has been operating its own telecommunications system, Churchill Communications. In recent years, they upgraded the vast majority of the county from copper to fiber offering a gigabit connection to the Internet. Churchill Communications General Manager Mark Feest joins us this week for Community Broadband Bits Episode 204.

We discuss the fascinating history behind their network and how they have built it without using any local taxpayer dollars.

Mark also explains two recent announcements that involve Churchill Communications offering its services in nearby areas where it already has some fiber. Finally, we discuss how some of the people that were originally skeptical of municipal networks have come around and are even asking Churchill Communications to expand.

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Random Quote

Opponents of municipal broadband initiatives contend that public broadband projects are “failures” if they do generate “profits” in the amounts, and within the short time periods, that investors and the financial community expect of private corporations. To define success this way is to miss two fundamental points: (1) public entities have fundamentally different ways of creating economic benefits for the community than the private sector; and (2) municipalities often undertake a public communications initiative precisely because the project would not be profitable enough for a private company.